the action felt close because of the zoom level, i think this is a lean-in or lean-out kind of choice for the game design, lean-in might mean designing more surprise/horror mechanics with enemies jumping or lurking out of darker shadows, lean-out might mean designing a zoomed out survivors/shooter style gameplay. i think adding more strategically diverse or flavored upgrade options early on would be good too, it gives more player agency and makes players want to see how their strategy works out.
EDIT: i forgot to mention the psych horror vibe was cool and i think the idea of a last ditch high risk treatment as gameplay could give a lot of room for surprising mechanics